Ichigo Office(8975)

Ichigo Office April 2024 Fiscal Period
Corporate Presentation
June 14, 2024

Ichigo Office REIT Investment Corporation (8975)
Ichigo Investment Advisors Co., Ltd.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

www.ichigo-office.co.jp/en

Make The World
More Sustainable© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

April 2024 Results

Appendix April 2024 Highlights
 April 2024 Earnings
 April 2024 Financial Metrics
 Growing Shareholder Value: NAV
 Ichigo Office Total Return Track Record & Ongoing KPI
 Occupancy & Average Rent per Tsubo (3.3m2)
 Rent Trends
 Organic Growth: New Tenants at Higher Rents
 Organic Growth: Rent Renewals of Existing Tenants
 Organic Growth: Driving Growth via Value-Add Capex Ichigo Office ESG
 Financial & Portfolio Data Mid-Size Office Investment Opportunity About Ichigo Office Other

Ichigo Office Growth Strategy
 Ichigo’s Strong Sponsor Support
 Gains on Sale due to Strategic Asset Sales
 New Share Issuance via Third-Party Allotment
 Driving Earnings via Strategic Portfolio Restructuring
 Value-Add Plans for Acquired Assets
 Access to Sponsor Ichigo’s Robust Pipeline of Office Assets
 October 2024 Forecast April 2025 Forecast© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

5April 2024 Results© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

6

April 2024 Highlights
Achievements

Details• Ichigo Ofuna Building / JPY 2.4B

• Sold at price +11% vs. Appraisal Value• Gains on Sale: JPY 300M

• NOI: +JPY 114M (+2.1% vs. initial forecast)• Net Income: + JPY392M (+13.4% vs. initial
forecast)• NOI increase due to thorough cost control• Gains on sale via sale of value-add asset

Financing• Refinancing: JPY 2.9B
• Bond Issuance: JPY 350M

• Maintain stable financial base via extending loan
maturity and hedging interest rate risk via interest rate
swaps
• Bond issuance to sponsor to finance value-add capex
deployment

Dividend

JPY 2,199(+JPY 84, +4.0% vs. October 2023)• +JPY 193 (+9.6%) vs. initial forecast

Base EPS1

JPY 1,982(+JPY 6, +0.3% vs. October 2023)• +JPY 46 (+2.4%) vs. initial forecast

NAV2

JPY 100,189(+JPY 2,565, +2.6% vs. October 2023)• Increase in portfolio unrealized gains: JPY 52.8B(+JPY 3.8B vs. October 2023)• Driving asset value via value-add capex

FFO3

JPY 2,643(+JPY 26, +1.0% vs. October 2023)• FFO increase driving stable dividend growth

Asset Sale

Organic Growth

1 Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee
2 NAV = BPS + Net Unrealized Capital Gains per share

3 FFO = Funds From Operations© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

7

April 2024 Earnings(JPY million)
October 2023
ActualOperating Revenue

7,914

April 2024
Actual (A)8,068

April 2024
InitialForecast (B)(Reference)
Revised
Forecast

vs. Forecast(A) - (B)

7,923

+144

Major Variation Factors

8,066

Operating Profit

3,914

4,094

3,708

+385

4,055

Recurring Profit

3,096

3,323

2,931

+392

3,278

Net Income
Dividend Reserve (-)
Dividend Reserve Release (+)

Dividend

3,095

3,323

2,931

+392

3,278

–

101

–

+101

101

105

105

105

–

–

JPY 2,115

JPY 2,199

JPY 2,006+JPY 193

JPY 2,169

EPS

JPY 1,976

JPY 1,982

JPY 1,936+JPY 46–

No. Of Shares Outstanding

1,513,367

1,513,367

1,513,367–

1,513,367

5,648

5,583

5,468

+114

–

88

87

88

-1

87

Occupancy (on Last Day of Period

96.8%

96.6%

96.7%

-0.1%

–

Average Occupancy

96.4%

95.7%

96.1%

-0.4%

–

NOI
No. Of Assets

Increase in Gains on Sale +306
Decrease in Rental Income -161
Decrease in rental income -7
Decrease in utilities income -201
(Decrease in electricity income -200)
Increase in termination penalty fee +45
Decrease in Rental Expenses -272
Decrease in utilities expenses -226
(Decrease in electricity expenses -217)
Decrease in service provider expenses (mainly brokerage fees) -38
Increase in Operating Expenses (excluding Rental Expenses) +31
Increase in NOI & Dividend Performance Fee +17
Increase in non-deductible consumption tax +20
Reference: Capex
April 2024 Actual 1,039
Reference: April 2024 Reserves (Post-Dividend)
Negative Goodwill Reserve 8,479
Dividend Reserve 3,572
Reference: Dividend Reserve
Increase due to retaining Gains on Sale +101

* Initial April 2024 forecast announced on December 15, 2024
Base EPS calculated by deducting Gains on Sale from Net Income, and adding the impact of Gains on Sale on asset management fee
NOI = Rental Income - Rental Expenses + Depreciation
No. Of Assets is as of Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

8

April 2024 Financial Metrics
Maintaining Financial Base Stability & Driving Asset Value, Market ValueLTV Decrease
April 2023

October 2023

April 2024

Dividend

JPY 4,224

JPY 2,115

JPY 2,199

NAV (per Share)

JPY 96,660

JPY 97,624

JPY 100,189

FFO (per Share)

JPY 1,947

JPY 2,617

JPY 2,643

Book Value LTV

48.7%

49.7%

49.8%

Market Value LTV

45.0%

44.7%

44.5%

Average Interest Rate

0.84%

0.90%

0.92%

Average Debt Maturity

7.0 years

7.1 years

7.1 years% Fixed Rate Loans

91.6%

94.2%

95.0%

Credit Rating (JCR)

A+ (Stable)

A+ (Stable)

A+ (Stable)* NAV = Net Assets + Net Unrealized Capital Gains* FFO = Net Income + Depreciation + Losses on Disposal of Fixed Assets + Liability for Asset Retirement Obligation + Losses on Asset Sales Gains on Asset Sales - Extraordinary Gains + Extraordinary Losses* Book Value LTV = Interest-Bearing Liabilities/Total Assets* Market Value LTV = Interest-Bearing Liabilities/Period-End Appraisal Value (or Appraisal Value as of Acquisition Date for Assets Acquired
During Fiscal Period)* Average Debt Maturity is as of Period-End© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

9

Growing Shareholder Value: NAV
Growing Value via Value-Add Capex(JPY)

NAV Growth in Past Year: +3.7%+3.7%

Annual Average NAV Growth:
After Becoming Specialized Office REIT: +4.3%
Most Recent 5 Years: +2.6%
91,618BecameSpecialized Office REIT
in September 2015

84,07685,957

93,193

100,189

92,787 92,874 92,958

95,053

97,07996,660

Oct
2022

Apr
2023

97,62487,934

81,15576,40078,33673,493
70,117

Oct
2015

Apr
2016

Oct
2016

Apr
2017

Oct
2017

Apr
2018

Oct
2018

Apr
2019

Oct
2019

Apr
2020

Oct
2020

Apr
2021

Oct
2021

Apr
2022

Oct
2023

Apr
2024

NAV per Share = BPS + Net Unrealized Capital Gains per Share© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

10

Ichigo Office Total Return Track Record & Ongoing KPITheoretical 1-Year Total Return (Dividend + NAV Growth Rate) : 8.6%1
Total Return (Total Shareholder Return) Since Listing: +318.9%
Total Return2(as of April 30, 2024)

1-Year

3-Year

10-Year

Since
Listing

Ichigo Office Total Return

-3.3%

+1.2%

+119.2%+318.9%Ichigo Office Total Return p.a.

-3.3%

+0.4%

+8.2%

+8.0%

TSE REIT Index Total Return p.a.

+0.9%

-0.5%

+5.9%

+5.3%

Ichigo Office Outperformance
vs. TSE REIT Index

-4.1%

+0.8%

+2.3%

+2.7%

Ongoing KPI: Ichigo Office Total Return >8% p.a.
1 Calculated by dividing April 2024 & October 2023 Dividend (JPY 4,314) by Ichigo Office’s share price as of April 30, 2023 (JPY 88,100) plus April

2023~April 2024 NAV per share growth JPY 4,314 ÷JPY 88,1000 x 100 + 3.7% = 8.6%
2 Total Return: Change in Share Price + Dividends (Reinvested) divided by Share Price

Since Listing: from October 12, 2005; 10-year period: from April 30, 2014; 3-year period: from April 30, 2021; 1-year period: from
April 30, 2023 (Source: Bloomberg)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

11

Occupancy & Average Rent per Tsubo (3.3m2)− Maintained High Occupancy & Rent per Tsubo Increase− Rental per Tsubo Increase of Central Tokyo Driving Rent per Tsubo
Increase Across All Assets
Average Rent per Tsubo (3.3m2)

Occupancy (Office)100%

8 months
Average Free-Rent Period(JPY)

Office (Central Tokyo)

Period-End Occupancy
Free Rent-Adjusted Occupancy

18,200
96.7%

96.6%
96.0%

95.6%

Office (All)18,30018,10018,10018,100

96.5%

95.9%

95%

4 months
94.8%

95.1%

94.7%

94.1%

15,10015,20015,10015,10015,0002.3

2.5

Apr 2022

Oct 2022

2.0

1.9

Apr 2023

Oct 2023

2.3

90%

0 months
Apr 2024

Apr 2022

All Offices
81 Assets(Central Tokyo) (44 Assets)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Oct 2022
82 Assets(44 Assets)

Apr 2023
84 Assets(44 Assets)

Oct 2023
85 Assets(44 Assets)

Apr 2024
84 Assets(44 Assets)

12

Rent Trends
Increase in Monthly Rent Due to New Tenants & Renewals at Higher Rent
Exceeds Impact of Occupancy Decrease

1,139

October 2023

New Tenants/
Increased Space

Departing Tenants/
Decreased Space

Renewals at
Higher Rent

+64

-58

+4

Change Due toTenant Movements+JPY 5M (+0.5%)

Change Due to
Lease Renewals
JPY 4M (+0.4%)

Monthly Rent

(JPY million)

1,148

April 2024

* Excludes assets acquired and sold during the April 2024 fiscal period* Change in Occupancy: 96.7% (October 2023)  96.5% (April 2024)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

13

Organic Growth: New Tenants at Higher Rents
80% of New Tenants at Higher Rents
New Tenant Rent vs. Previous Tenant Rent

Impact on Monthly Rental Income From Tenant Turnover(Office, Leased Area Basis)■ Downward

26.1%

6.2%

■ Flat(Office)15.3%

Downward:
8 new tenants
Average
Decrease:-14.9%*

7.0%

Flat: 4 new tenants■ Upward

26.0%

6.4%

19.9%

UpwardDownward
Decrease Due to Large-Scale Retail Tenant
at the Ichigo Sakae Building+8,408+2,204-6,164

15.6%

4,503
+1,745(JPY thousand)

10,056+3,966+2,899Rent
Change
77.7%
67.7%

67.6%

64.5%

-126

Upward:38 new tenants

+515
-641

-1,154-1,648-2,298Average
Increase+18.2％

Average
Increase+13.7％

Average
Increase+14.5％

Average
Increase+24.8％-9,420-10,131

Oct 2022

Apr 2023

Oct 2023

Apr 2024

Oct 2022

Apr 2023

Oct 2023

Apr 2024

Oct 2024**Oct 2024 reflects leases in place as of June 5, 2024.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

14

Organic Growth: Rent Renewals of Existing Tenants
Proportion of Upward Rent Renewals Increased, No Downward Rent
Renewals
New Rent vs. Previous Rent

Change in Total Monthly Rent

(Office, Leased Area Basis)(Office)■ Downward
0.7%■ Flat4.4%

1.1%(JPY thousand)UpwardDownward■ Upward
0%+4,160
4,160

+190
772

-231
625

Flat: 226 tenants

86.4%
95.5%

93.7%

Average
Increase+9.5％

Average
Increase+11.5％

Average
Increase
+6.2％

3.8%

1.9%

1.7%

Oct 2022

Apr 2023

Oct 2023+35

Rent
Change97.2%

Average
Increase+12.8％

+292
+543

+210
-175

0

-250

Oct 2023

Apr 2024

Oct 2024*-581

Upward:25 tenants

-856

13.6%
Apr 2024

Oct 2022

Apr 2023*Oct 2024 reflects leases in place as of June 5, 2024.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

15

Driving Growth via Value-Add Capex (1)− Value-Add Capex ROI c. 30%− Realized Upside via Common Area Renovations & Ichigo Layout OfficeFormat Conversions− Increased Earnings & Asset Value Over Short-Term
Value-Add Capex

DetailIchigo Nakameguro
Building

・ Ichigo Layout Officeinstallation

Ichigo Sasazuka Building

・ Entrance renovation
・ LED lights installation
・ Common area renovation
・ Restroom installation

Ichigo Ikebukuro East
Building

・ Common area renovation
・ Restroom renovation

Rent
Renewal %Re-tenanting+71%(1 tenant)Re-tenanting+41%(2 tenants)
Rent Increase+56%(1 tenant)Rent Increase+10%(1 tenant)Re-tenanting+39%(1 tenant)

Rent
Increase p.a.

ROI

+JPY 4 million

31.6%(Actual)+JPY 61 million

36.8%(Forecast)+JPY 13 million

32.5%(Forecast)+JPY 8 million

18.9%(Forecast)

Ichigo Jimbocho Building

・ Ichigo Layout Officeinstallation

Ichigo Shibuya
Kamiyamacho Building

・ Ichigo Layout Officeinstallation

・ Leasing activity in progress

13.4%(Forecast)

Ichigo Higashi Ikebukuro
Building

・ Common area renovation
・ Restroom renovation

・ Leasing activity in progress

11.6%(Forecast)

ROI for assets with vacant sections and assets expected to undergo additional renovations are calculated using rent and investment forecasts© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

16

Driving Growth via Value-Add Capex (2)Ichigo Nakameguro Building− Leased to New Tenant at 71% Rent Increase Due to Ichigo Layout Office− Rent Increase 2X on Rental Income Basis Due to Review of Leased Area

Outcomes as of Today (Actual)

Tenant Area

Meeting Room

Tenant Area

Rent
Renewal %Re-tenanting
71% (1 tenant)

Rent
Increase+JPY 4 million p.a.

ROI

31.6% (Forecast)

Entrance© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

17

Driving Growth via Value-Add Capex (3)Ichigo Sasazuka Building (Shibuya-ku, Tokyo)− Driving Asset Value via High Investment Impact (Appraisal Value +16%)− Rent Increase of Existing Tenant & New Tenants at Higher Rents After
Large-Scale Common Area Renovation− Working Towards Rapid Lease-Ups of Remaining Vacant Sections &Rent Increases
Outcomes as of Today (Actual)
Rent
Renewal %Tenant Area

Elevator Hall

FaçadeRe-tenanting+41% (2 tenants)

Rent Increase+56% (1 tenant)

Rent
Increase+JPY 61 million p.a.

ROI

36.8% (Forecast)Elevator Hall

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

18

Ichigo Office Growth Strategy© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

19

Ichigo’s Strong Sponsor Support
Growth Support From Sponsors Ichigo & Ichigo Trust
January 2023

Purchased Ichigo Office shares (33,925 shares)－Strong commitment to further drive Ichigo Office growth & shareholder value

November 2023

Subscribed to investment corporation bonds to financevalue-add capex (JPY 350M)－Highly cost competitive: 10-Year period, fixed 1% interest rate
－Forecast Investment ROI c. 30%

IchigoJanuary 2024

Purchased Ichigo Office shares (42,168 shares)－Ichigo-owned shares as of May 30, 2024; 149,208 shares, 9.5%

May 2024

Provided assets with value-add potential (Ichigo Estate)－No Acquisition Performance Fee, performance fee-only growth mode

January 2022

IchigoTrust

Invested in bridge fund
－Invest in GK Kizuna1 (JPY 3.7B)－Provide preferential negotiation right to acquire bridge fund assets free ofchargeMay 2024

Participated in third-party share issuance (JPY 3.5B)－Minimize impact on existing shareholders－Ichigo Trust-owned shares as of May 30, 2024: 41,567 shares, 2.6%

Share percentages assume no change in the shareholder registry as of April 30, 2024 and new shares are issued via third-party allotment,
and may not necessarily reflect actual share percentages.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

20

Gains on Sale due to Strategic Asset Sales
Monetizing Higher Asset Values Generated via Value-Add Initiatives &Distributing Proceeds to Shareholders– Ichigo Ofuna Building: Gains on Sale (JPY 300M) Distributed as Apr 2024 Dividend– Ichigo Kudan 2 Chome Building: Gains on Sale (JPY 1.06B) Distributed as
Oct 2024 Dividend
Ichigo Kudan 2 Chome
Building

Ichigo Ofuna Building

Asset
Name

Asset
Name

Asset Type

OfficeAsset Type

OfficeBook Value

JPY 1.98B

Book ValueJPY 750M

Appraisal Value

JPY 2.18B

Appraisal Value

JPY 1.2B (Apr 2024)

Sale Price

JPY 2.42B

Sale Price

JPY 2.05B

Sale Date

April 26, 2024 (Apr 2024)

Sale Date

October 31, 2024 (Oct 2024)

Gains on Sale

JPY 306M

Gains on Sale

JPY 1.06B

Buyer

Third-Party JapaneseCompany

Buyer

Third-Party JapaneseCompany

Of the gains on sales from the Ichigo Ofuna Building, Ichigo Office is retaining JPY 101 million as retained earnings without incurring a tax burden, and distribute the remainder as dividend.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

21

New Share Issuance via Third-Party Allotment− Leveraging Sponsor Support to Finance Acquisitions of Assets With
Earnings Upside− Selected Third-Party Allotment to Issue New Shares to Minimize Share
Price Decrease & Share Dilution for Existing Shareholders
 No risk of issuance price being pushed down by share price decreases during
book building period
 Issued shares at no discount No significant underwriter & offering costs that are typical of public offerings
Third-Party Allotment Overview

Number of Shares to beOffered41,567 Shares

Issue Price

JPY 84,200 per Share(Closing price on May 17, 2024)

Total Issue AmountJPY 3,499,941,400

Offering Method

Third-Party Allotment

Allottee and Number of
Ichigo Trust: 41,567 Shares
Shares to be Issued to Allottee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

22

Driving Earnings via Strategic Portfolio Restructuring− Average NOI Yield of 6 Acquired Assets (JPY 15.4B): 4.6%
− Executing Value-Add to Drive Asset Value
Asset Number

O-102

O-103

Asset Name

Ichigo Akihabara
East Building

O-104

O-105

Ichigo Hakata Meiji Ichigo Hakata Gion Ichigo Tenjin North
Dori Building
Building
Building

O-106

O-107

Ichigo Gotanda
West Building

Ichigo Otemachi
North Building

Exterior

Acquisition Date

May 30, 2024

Acquisition Price

JPY 3,240M

JPY 3,080M

JPY 1,700M

JPY 1,550M

JPY 3,950M

JPY 1,946M

Appraisal Value

JPY 3,370M

JPY 3,460M

JPY 1,710M

JPY 1,570M

JPY 4,010M

JPY 2,060M

NOI Yield

4.1%

5.4%

4.5%

4.7%

4.6%

4.3%

SellerFinancing Method

GK Kizuna1

Ichigo Estate
New Share Issuance via Third-Party Allotment, Loans, Cash-on-hand

NOI Yield is equal to Annual NOI calculated by IIA minus Acquisition Price© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

23

Value-Add Plans for Acquired Assets
Developed Detailed Value-Add Plans to Close 15~30% Rent Gap
Value-Add Plans
Ichigo Akihabara East Building• Renovate restrooms & common areas• Negotiate long-term rent increases & retenanting• Close 15% rent gap

Ichigo Hakata Meiji Dori Building• Renovate vacant space with Ichigo Layout
Office format (target ROI>8%)• Renovate common areas including pantry &entrance• Close 30% rent gap

Ichigo Hakata Gion Building

Ichigo Tenjin North Building• Conduct leasing activities tailored to needs oftenants in the area
• Renovate restrooms & common areas• Close 15% rent gap• Convert 8F residential section to officesection (target ROI>10%)• Improve energy efficiency via installing LED
lighting• Close 20% rent gap

Ichigo Gotanda West Building

Ichigo Otemachi North Building• Renovate common areas on 2nd – 5th floors• Convert vacant section to Ichigo Layout
Office• Close 15% rent gap• Convert 3 floors into Ichigo Office Layout
formats (target ROI>10%)• Close 20% rent gap© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

24

Access to Sponsor Ichigo’s Robust Pipeline of Office Assets
Growth via Sponsor Pipeline (14 Assets, JPY 64.6B)
No.

Asset Name

Area

1

Office in Sapporo, Hokkaido

Four Major Regional Cities

2

Office in Chiyoda-ku, Tokyo

Central Tokyo

3

Office in Minato-ku, Tokyo

Central Tokyo

4

Office in Minato-ku, Tokyo

Central Tokyo

5

Office in Minato-ku, Tokyo

Central Tokyo

6

Office in Meguro-ku, Tokyo

Tokyo Metropolitan Area

7

Office in Koto-ku, Tokyo

Tokyo Metropolitan Area

8

Office in Musashino City, Tokyo

Tokyo Metropolitan Area

9

Office in Funabashi City, Chiba

Tokyo Metropolitan Area

10

Office in Sendai City, Miyagi

Other Regional Cities

11

Office in Utsunomiya City, Tochigi

Other Regional Cities

12

Office in Fukuoka City

Four Major Regional Cities

13

Office in Fukuoka City

Four Major Regional Cities

14

Office in Fukuoka City

Four Major Regional Cities

Sapporo City

Sendai City,
MiyagiFukuoka City

Total Book Value at Acquisition &Preferential Negotiation Price: JPY 64.6B
Minato-ku,
Tokyo© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Meguro-ku,
Tokyo

25

October 2024 Forecast
Dividend Increase on Back of Gains on Sale & Earnings Contributions From
Acquired Assets(JPY million)
April 2024
Actual (B)October 2024
Forecast (A)vs. April 2024
(A) - (B)

Major Variation Factors (vs. April 2024)

Operating Revenue

8,068

9,214

+1,146

Operating Profit

4,094

4,977

+883

Recurring Profit

3,323

4,068

+744

Net Income

3,323

4,068

+744

Dividend Reserve (-)

101

–

-101

Dividend Reserve Release (+)

105

105

–

Dividend

JPY 2,199

JPY 2,683+JPY 484

EPS

JPY 1,982

JPY 1,928-JPY 54

No. Of Shares Outstanding

1,513,367

1,554,934

41,567

NOI

5,583

5,698

+114

87

92

+5

Occupancy (on Last Day of Period

96.6%

97.0%

+0.4%

Average Occupancy

95.7%

96.1%

+0.4%

No. Of Assets

Increase on Gains on Sale +762
October 2024 Forecast (Sale of Ichigo Kudan 2 Chome Buliding) +1,068
April 2024 Actual (Sale of Ichigo Ofuna Building) 306
Increase in Rental Income +383
Increase due to October 2024 asset acquisitions +300
Decrease due to sale of Ichigo Ofuna Building -64
Increase due to existing assets +147
[Existing Assets]
Increase in common area services income +43
Increase in utilities income +149
Decrease in one-off income -45
Increase in Rental Expenses +230
Increase due to October 2024 asset acquisitions +119
Decrease due to sale of Ichigo Ofuna Building -28
Increase due to existing assets +139
[Existing Assets]
Increase in utilities expenses +170
Decrease in depreciation -67
Increase in Operating Expenses (excluding Rental Expenses) +33
Increase in NOI & Dividend Performance Fee due to revenue increase +12
Increase in engineering report fees +6
Increase in non-deductible consumption tax +5
Increase in Non-Operating Expenses +129
Increase in interest due to new loans in October 2024 +83
Increase in borrowing-related expenses +23
Share issuance expenses +22
Reference: Capex
October 2024 Forecast 1,356
Reference: October 2024 Forecast (Post-Dividend)
Negative Goodwill Reserve 8,374
Dividend Reserve 3,572* NOI = Rental Income - Rental Expenses + Depreciation
No. Of Assets is as of Period-End
Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

26

April 2025 Forecast– Dropping Out of Gains on Sales– Earnings From Acquired Assets Contributing to Dividend & EPS Growth(JPY million)
October 2024
Forecast (B)Operating Revenue

April 2025
Forecast (A)9,214

vs. October 2024
(A) - (B)

8,282

-931

Operating Profit

4,977

4,072

-905

Recurring Profit

4,068

3,163

-905

Net Income

4,068

3,162

-905

–

–

–

105

105

–

Dividend

JPY 2,683

JPY 2,102-JPY 581

EPS

JPY 1,928

JPY 2,034+JPY 106

No. Of Shares Outstanding

1,554,934

1,554,934

–

5,698

5,910

+212

92

92

–

Occupancy (on Last Day of Period)

97.0%

97.1%

+0.1%

Average Occupancy

96.1%

97.1%

+1.0%

Dividend Reserve (-)
Dividend Reserve Release (+)

NOI
No. Of Assets

Major Variation Factors (vs. October 2024)
Dropping Out of Gains on Sale -1,068
Increase in Rental Income +137
Increase due to October 2024 asset acquisitions +92
Dropping Out due to sale of Ichigo Kudan 2 Chome Building -44[Existing Assets]
Increase in rental income +107
Decrease in utilities income -21
Decrease in Rental Expenses -51
Decrease in service provider expenses (mainly brokerage fees) -59
Decrease in utilities expenses -22
Increase in depreciation and other expenses +22
Increase in repair expenses +13
Increase in Operating Expenses (excluding Rental Expenses) +25
Increase in NOI & Dividend Performance Fee +62
Decrease in shareholder meeting-related expenses -3
Decrease in engineering report fee -2
Decrease in non-deductible consumption tax -26
Increase in Non-Operating Expenses 0
Decrease in share issuance expenses -22
Increase in interest due to new loans +41
Decrease in borrowing-related expenses -18

Reference: Capex
April 2025 Forecast 1,291
Reference: April 2025 Reserve (Post-Dividend)
Negative Goodwill Reserve 8,269
Dividend Reserve 3,572* NOI = Rental Income - Rental Expenses + Depreciation
No. Of Assets is as of Period-End
Base EPS calculated by deducting Gains on Sale and the impact of Gains on Sale on asset management fee© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

27

Appendix: Ichigo Office ESG© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

28

Ichigo Office’s Sustainability Commitment
Ichigo Sustainability Policy
Ichigo believes that working on behalf of society and the environment is a fundamental social responsibility and will support the sustainable growth of
Ichigo and Ichigo Office. Ichigo has thus made sustainability a key priority, and has established the following Sustainability Policy to actively work to
reduce Ichigo’s environmental impact and support sustainable outcomes.
1. Harmony With the Environment
Ichigo actively monitors and minimizes the environmental impact of its real estate operations.
2. Energy Conservation, CO2 Emissions Reduction, and Recycling
Ichigo seeks to contribute to a low-carbon, low-waste society by lowering its energy consumption, extending the useful life of its
assets, actively recycling, and reducing waste and water consumption.
3. Regulatory and Environmental Compliance
Ichigo complies with all environmental laws and regulations and Ichigo’s own independently-established environmental rules. Ichigo
also carefully monitors and complies with all applicable changes in laws and regulations.
4. Training and AwarenessIchigo promotes understanding of its Sustainability Policy and works to increase sustainability awareness among all Ichigo employees.
Ichigo will also promote sustainability in coordination with Ichigo stakeholders, seeking understanding and cooperation onsustainability from Ichigo partner companies and tenants.
5. Sustainability Performance Communication and Disclosure
Ichigo communicates this Sustainability Policy and Ichigo’s sustainability initiatives to society at large. Ichigo also obtains
certifications for its sustainability activities on an ongoing basis.
6. Green Procurement
Ichigo will implement green procurement measures, such as environmentally-friendly building materials and sustainable design, in
Ichigo’s building renovations, as well as selecting partner companies based on their environmental sustainability initiatives.

Ichigo Sustainability Structure− The Head of Ichigo Office is responsible for promoting sustainability and ensuring compliance with the Sustainability Policy.
− Quarterly meetings to monitor sustainability efforts and compliance Attended by the Heads of Sustainability, Asset Management, Business Planning, and ESG Execution
 Develop sustainability goals and initiatives in coordination with sponsor Ichigo− Information Disclosure Disclose sustainability goals and performance and communicate to stakeholders© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

29

Ichigo Climate Positive: CO2 Reduction vs. Emissions (1)Ichigo CO2 Reduction = 5X CO2 Emissions

CO2 Reduction
CO2 Emissions

101,217

21,000tons

CO2 Reduction due to Ichigo & Ichigo Green (9282) Clean
Energy Power Plant Production

tons

Scope 1 & 2 Emissions
Ichigo + Ichigo Office + Ichigo Hotel (3463) + Ichigo
Green (9282)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

30

Ichigo Climate Positive: CO2 Reduction vs. Emissions (2)Ongoing Ichigo Clean Energy Production Growth (CO2 Reduction Increase) &Renewable Energy Transition & Carbon Offsets (CO2 Emissions Reduction)
CO2 Reduction/Reduction Impact/CO2 Emissions■ Total Ichigo Power Plant CO2 Reduction ■ Total Ichigo CO2 Emissions (Scope 1+2)
□ CO2 Reduction Due to Energy Efficiency, Transition to Renewable Energy, and Non-Fossil Fuel Certificate Tracking for Ichigo Power Plants(tons)-250-7,07075,42575,808-34,470

83,41259,445

101,217

98,647

95,47854,803
26,409FY20/2

FY21/2-40,000

FY22/2

FY23/221,000FY24/2(Estimated)

Notes: Reduction calculated using each EPCO’s adjusted CO2 emission factor disclosed by the Ministry of Environment as a constant for each period.
RE100 non-fossil fuel tracking certifies the environmental value of non-fossil electricity with tracking information on renewable energy power plants© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

31

RE100: Continued Renewable Energy Transition
RE100 Progress: 90%, Exceeds FY24/2 Target
Targeting Full Group-Wide 100% Renewable Energy Transition in FY25/2– Ichigo Office & Ichigo Hotel Have Completed Transition to 100% Renewable Energy
RE100 Progress

RE100 Target: 2025
85%
FY24/2 Target

Non-Fossil Certificate
Tracking for
Ichigo Power Plants

37%

90%

53%

Renewable Energy Switch

Ichigo’s RE100 Target

100% Renewable Electricity Across its Operations by 2025
Including electricity used at Ichigo Office, Ichigo Hotel (3463) assets© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

32

ESG Initiatives: Environmental (1)Sustainability Initiatives Progress

GRESB Real Estate Assessment (Since 2016)− Awarded 4 Stars in GRESB Rating (Up From Last Year’s 3 Stars)− Won Green Star designation 7 years in a row,
in recognition of its ESG-related policies andorganizational setup (the “Management Component”),
and environmental performance of assets as well as
tenant engagement (the “Performance Component”)

Transitioning to Renewable Energy
Ichigo RE Target: Sourcing 100% Renewable Electricity Across Its Operations by 2025
− In line with sponsor Ichigo joining RE100, Ichigo Office completed transitioning all
assets to renewable electricity*Excluding partially-owned and co-owned assets as of April 30, 2024

− Scheduled to Obtain Non-Fossil Certificate Tracking for Electricity Used at PartiallyOwned and Co-Owned Assets− Targeting Zero CO2 Emissions for Electricity Used at All Ichigo Office-Owned
Assets© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

33

ESG Initiatives: Environmental (2)Environmental Certifications (as of April 30, 2024)− 23 Certifications (20 Assets), 32.8% of Total Leasable Area for Offices
CASBEES RankIchigoIchigoTakamatsu Marunouchi
Building
Building

Tokyo Low-Carbon Smalland Medium-Sized Model Buildings

BELS

IchigoJingumae
Building

IchigoSendai East
Building

2 Stars (★★)

1 Star (★)

Ichigo Akihabara
North Building

Ichigo Omiya
Building

A3

A3-

IchigoIchigoJingumae Higashi Gotanda
Building
Building

A RankA2+

A2

Ichigo
Kudan
Building

IchigoNogizaka
Building

IchigoOtsukaBuilding

IchigoMita
Building

A1+

DBJ Green Building
Ichigo
Ebisu
Green
Glass

IchigoSakaisuji
Honmachi
Building

IchigoHigashi
GotandaBuilding

3 Stars (★★★)

1 Star (★)

IchigoAkihabara
North
Building

IchigoOmori
Building

A1
IchigoNihonbashi East
Building
Ichigo Kanda
Nishikicho
Building

IchigoMirai
Shinkin
Building

Win Gotanda
Building

Win
GotandaBuilding 2© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Ichigo Hiroo Building

34

ESG Initiatives: Social
Increasing Stakeholder Satisfaction & Contributing to Society
Disaster & Emergency Readiness Emergency equipment such as elevator emergency
kits and vending machines Sandbags available at each building as flooding
measures

Ichigo Group Initiatives
 Contributing to Regional Revitalization• Ichigo works to revitalize local communities and promote regional
economic development. Ichigo’s model of preserving andimproving existing real estate creates jobs and supportsbusinesses, and our clean energy plants also support their hostcommunities by providing new and sustainable sources of income.

 Ichigo University

Elevator Emergency Kits

AED

Vending Machines as partof Disaster Recovery

 Tenant Satisfaction Surveys• Reflect tenant needs collected from periodic tenantsatisfaction surveys• Contributing to comfort and convenience of tenant
employees via introducing bike share system• Ichigo established Ichigo University in May 2013 to support
employees’ continuing education and personal growth.
• Ichigo University courses are taught by employees and external
professionals who are specialists in their fields and have deep
experience.
(Average Annual Number of Courses: 30)

OnlineIn-Person

 Sports Initiatives

Bike Share System• As a top partner of the J.League professional soccer league, we
support the league’s mission to promote community
development. Ichigo supports outstanding athletes in weightlifting,rifle shooting, track and field, and tennis.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

35

ESG Initiatives: Governance
Global Best Practice Governance
No Fixed Fee,
Performance FeeOnly Structure

Best Practice Governance Shifted to performancelinked fee structure on
November 1, 2020 to
fully align with value
creation forshareholders
 Pro-active, dynamic
management of Ichigo
Office assets on behalfof shareholders
 Reduced NOI &Dividend PerformanceFee based on EGM
approval on June 23,2023.

 Monitors Asset Management Company• All Ichigo Office Directors are Independent
Directors• Active dialogue and effective internal controls
via Board discussions led by REIT Executive
Director• Draw upon expertise of REIT Supervisory
Directors (qualified lawyers & accountants)

REIT

Asset Management Company (AMC)
 Best Practice Asset Management Structure• Half of AMC Directors (2 of 5) are Independent
Directors• Independent asset management team & bestpractice execution on behalf of Ichigo Office
REIT within AMC• Compliance and Audit are directly under the
AMC President to monitor and review criticalcompliance matters• Ensure objectivity by including third-party,
independent experts in the Investment and Risk
& Compliance Committees

Independence of The Investment Corporation From AMC

Independent Directors at AMC

25 of 58 J-REITs have AMC Presidents serving as
Executive Director of the REIT

Only 3 Asset Management Companies have any
Independent Directors

All Ichigo Office Directors are Independent

2 of 5 Ichigo Investment Advisors' Directors
are Independent* Based on research as of May 31, 2024

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

36

Appendix: Financial & Portfolio Data

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

37

Borrowing Details (1)Loan Details

Average Interest Rate and Average Remaining Loan Maturity

Average Interest Rate

Maturity

Interest
Rate

JPY 500M

7.7 years

1.52200%(Fixed)3.9 years

4.0 years

JPY 400M

7.7 years

1.52200%(Fixed)JPY 635M

4.9 years

1.28420%(Fixed)JPY 1.365B

7.5 years

1.64200%(Fixed)Bonds

JPY 350M

10.0 years

1.00000%(Fixed)Total/
Average

JPY 3.25B

7.3 years

1.46972%

5

Average Remaining Loan Maturity

2.0%
4.1 years

4

4.1 years

3.7 years

1.5%

Bank
Loans

3

1.0%
0.5%

Amount(Average Remaining Loan Maturity Including Bonds, Years)(Interest Rate)
2.5%

2

0.79%

0.81%

0.84%

0.92%

0.90%

1

0.0%

0

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024

Fixed vs. Floating Loan Ratio
8.7%

8.6%

8.4%

5.8%

5.0%

Fixed

Floating

91.3%

91.4%

91.6%

94.2%

95.0%

Fixed *
Floating* Fixed includes floating loans fixed via
interest rate swaps

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

38

Borrowing Details (2)Loan Maturity Distribution (as of April 30, 2024)
Bank Loans (fixed rate including fixed via interest rate swaps)
Bonds
Subordinate Bonds

Bank Loans (floating rate)(JPY million)

11,645
1,200

9,812

9,763
8,908

8,846

9,682
8,902

1,000

1,000

7,346

9,347
1,200
7,595

1,000

1,500

5,476

5,494
7,953

4,192

10,445

4,899

8,763

7,246

8,147

6,346

6,095
1,300

Oct
2024

Apr
2025

Oct
2025

600
Apr
2026

1,700
350

955
Oct
2026

Apr
2027

Oct
2027

Apr
2028

Oct
2028

Apr
2029

Oct
2029

Apr
2030

Oct
2030

Apr
2031

Oct
2031

Apr
2032

Oct
2032

Apr
2033

Oct
2033

Apr
2034

LTV (as of April 30, 2024)
55
Book Value LTV
50

Market Value LTV

48.8%

49.2%

48.7%

49.7%

49.8%

45.2%

44.7%

45.0%

44.7%

44.5%

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024

45

40

35

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

39

Interest-Bearing Liabilities and Ichigo Office Credit Rating
Lender Base (as of April 30, 2024)
LenderSMBC
Mizuho BankSBI Shinsei BankMUFG Bank
Aozora Bank
Resona Bank
Bank of Fukuoka
Development Bank of JapanThe Kagawa Bank
Mizuho Trust
The Bank of Yokohama
Nishi-Nippon City BankORIX Bank
Kansai Mirai Bank
Total
Bonds
Unsecured Bonds No.1
Unsecured Bonds No.2
Unsecured Bonds No.3
Unsecured Bonds No.4
Unsecured Bonds No.5
Unsecured Bonds No.6
Investment Corporation Bonds No.1
Total
Total Interest-Bearing Liabilities

Amount(JPY million)

Credit Rating

Ratio

Credit Rating Agency

Japan Credit Rating Agency (JCR)Type of Rating

Long-Term Issuer Rating

RatingA+

Rating Outlook

Stable29,52821,195
13,608
11,583

25.6%

9,952
8,418
3,529
3,400
1,715
1,637
1,422
1,412
413
195
108,007

8.6%

Amount

1,200
1,000
1,000
1,200
1,000
1,500
350
7,250
115,257

18.4%
11.8%
10.0%
7.3%
3.1%
2.9%
1.5%
1.4%
1.2%
1.2%
0.4%
0.2%
93.7%
Ratio
1.0%
0.9%
0.9%
1.0%
0.9%
1.3%
0.3%
6.3%
100%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

40

Trend of Portfolio Unrealized Gains
April 2024 Unrealized Gains JPY 52.8B, +JPY 3.8B vs. October 2023
(JPY million)
500,000

30%
Period-End Book Value (left axis)

Period-End Appraisal Value (left axis)

Unrealized Gains Ratio (right axis)
21.01%

20.77%

22.25%
20.39%

23.41%

25.60%
22.78%

23.50%

20.53%

400,000

20%

300,000

10%
241,167

200,000

199,297

244,029

240,398
199,047

202,697

202,436

201,489

205,098

207,951

259,178

257,216

255,330

253,110

246,330

244,001

208,272

206,3490%

100,000

-10%

0

-20%
Apr 2020(85 assets)

Oct 2020(85 assets)

Apr 2021(86 assets)

Oct 2021(86 assets)

Apr 2022(85 assets)

Oct 2022(86 assets)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Apr 2023(88 assets)

Oct 2023(88 assets)

Apr 2024(87 assets)41

Survey of New & Departing Tenants: Reason for Relocation
New Tenants

Oct 2022

Apr 2023

Oct 2023

Apr 2024

Departing Tenants

Moving to a different building for larger floor space or better location

Moving to a different building for larger floor space or better location

Opening a new office

Closing office

Reducing cost or floor space

Reducing cost or moving to a different building to integrate with other divisions

Other

Other

55.8%

20.9%

68.3%

Oct 2022

4.9%
4.9%

Apr 2023

5.4%
3.6%

Oct 2023

22.0%

55.4%

50.0%

11.6% 11.6%

35.7%

24.0%

2.0% 24.0%

21.2%

9.1%

27.5%

Apr 2024 12.2%© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

60.6%

20.0%

45.2%

36.6%

9.1%

47.5%

9.5%

5.0%

7.1%

38.1%

26.8%

24.4%

42

Rapid Re-Tenanting After Vacancies
Newly Leased and Newly Vacated Office Space (m2)
Newly Leased

Newly VacatedAverage Leased Area
8,306m2

Net Leased Area

11,79911,422(Nov 1, 2019 ~ Apr 30, 2024)

8,187
5,804

7,418

8,629

10,164
7,304

4,023
TBD1

Average Vacated Area
-9,111m2-6,059-6,714-7,433-8,711-9,110-7,9652-8,212-10,900(Nov 1, 2019 ~ Apr 30, 2024)-12,244
April
2020

October
2020

April
2021

-12,618
October
2021

April
2022

October
2022

April
2023

October
2023

April
2024

October
2024(Forecast)

Newly Leased

6.5%

3.2%

8.9%

4.5%

5.8%

6.5%

5.6%

7.7%

9.1%

TBD

Newly Vacated

5.9%

7.3%

9.6%

5.3%

8.6%

4.5%

6.7%

6.3%

9.7%

5.7%

Net Leased
Area (m2)+754-5,087-822-910-3,482+2,569-1,407+1,952-819

TBD

1 Newly leased area for the October 2024 Period is TBD as of today, but new lease contracts for 2,133m2 of space is either in place or is expected as ofJune 5, 2024.
2 Newly vacated area for the October 2024 Period (Forecast) is based on termination notices from tenants as of June 5, 2024.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

43

Free-Rent Incentive Trends
Free Rent Incentive Trends

Rental Income Loss Due to Free Rent

(Months)(JPY million)

4
Tokyo Metro Area (Average)
Regional Cities (Average)

Loss from Free Rent

122

3

Actual Rent Income

126

116

79

2.7

99

2.8
2.7

2.0
2

2.1

2.1

1.8
1.7

1.5

1.4
6,794

6,836

6,936

6,894

6,863

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024

1

0

Apr 2022

Oct 2022

Apr 2023

Oct 2023

Apr 2024© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

44

Value-Add Capex to Drive Tenant Satisfaction
Capex Tailored to Tenant Needs
Maintenance Costs, Capex, and Depreciation

October 2024 Capex Plan
(JPY million)

1,800

Maintenance

CAPEX

Depreciation

1,200

971

982

970

943

Asset Name

Details

Investment

Ichigo Kinshicho South Building

Exterior Wall Renovation

JPY 29M

Ichigo Marunouchi South Building

Elevator Upgrade

JPY 28M

Ichigo Shibakoen Building

Exterior Wall Renovation(Phase II)

JPY 25M

Ichigo Nakameguro Building

Exterior Wall Renovation

JPY 25M

Details

Investment

April 2025 Capex Plan
Asset Name

1,356

1,291

600

1,039
775

0

91

132

140

154

Oct 2023

Apr 2024

Oct 2024
Forecast

Apr 2025
Forecast

Ichigo Otsuka Building

Exterior Wall Renovation(Phase I)

JPY 36M

Ichigo Hakozaki Building

Exterior Wall Renovation

JPY 30M

Ichigo Nishi Honmachi Building

Exterior Wall Renovation(Phase IV)

JPY 30M

Ichigo Takadanobaba Building

Exterior Wall Renovation(Phase II)

JPY 23M

Capex forecast to increase from April 2024 due to increase in value-add capex© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

45

NOI Upside Despite Smaller Rent Gap
Approximately Half of October 2024, April 2025 Rent Renewals are
Tenants at Below-Market Rents
Distribution of Tenants by Rent Gap

Gap Between Tenant Rent and Market Rent
(Office)5%

All Areas
2.20%

Central Tokyo
2.65%
2.29%
2.35%

■ >10%■ -10% to 0%

213 (21.4%)

0.58%-2.86%-2.01%-1.42%-1.14%

58-0.59%

Below-Market Rent

-5.20%-7.32%-8.59%-10%
Apr 2020 Oct 2020 Apr 2021 Oct 2021 Apr 2022 Oct 2022 Apr 2023 Oct 2023 Apr 2024

* Rent Gap is the difference between the total tenant rent vs the total
market rent for a standard floor plate of a building. Market rent is derived
by replacing the tenant rent with the market rent as per data provided by
CBRE, K.K.

58

50

-2.94%-8.07%

59-0.05%

0%-5.98%(JPY million)

259 (26.1%)

1.48%

-5%

■ 0% to 10%■ Below -10%

100
59

45

41

Oct 2024

Apr 2025* Based on a standard floor plate and excluding tenants that have served
notice of termination.
* Numbers in parentheses are % of total rent up for renewal in the period
as of April 30, 2024.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

46

Portfolio Growth as REIT Specializing in Mid-Size Offices
As of October 31, 2023
No. Of Assets

As of April 30, 2024

Post Acquisition
As of May 30, 2024
(Reference)

Total

88 assets

87 assets

93 assets

Office85 assets

84 assets

80 assetsOther

3 assets

3 assets

3 assets

Total

JPY 212.4B

JPY 210.4B

JPY 225.9B

Office

98%

98%

98%

Other

2%

2%

2%

Central Tokyo

54%

55%

55%

Tokyo Metropolitan Area

22%

21%

20%

Four Major Regional Cities

18%

19%

20%

Other Regional Cities

6%

6%

5%

Appraisal Value

JPY 257.2B

JPY 259.1B

JPY 275.4B

Leasable Area

269,114.17m2

266,944.42m2

279,504m2

Occupancy

96.8%

96.6%

96.1%

No. Of Tenants

1,008

1,006

1,067

NOI Yield

5.3%

5.4%

4.9%

Portfolio Size

Area

•
•
•

Portfolio percentage by area is based on acquisition price.
NOI Yield is annualized and calculated excluding assets sold in each period; NOI Yield of an asset acquired in the April 2024 fiscal period is determined fromthe annual NOI calculated using an income approach based on appraisal value at acquisition.
May 30, 2024 data includes the Ichigo Kudan 2 Chome Building to be sold on October 31, 2024.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

47

High Seismic Safety Level
Acquisition Guidelines− Seismic safety：Compliant with new seismic standard− Seismic PML1：Stand-alone PML of 20% or less, with a non-exceedance probability of
90% for the entire portfolio
Portfolio Assets Seismic Safety Profile (as of April 30, 2024)

Portfolio PML

3.4%
as of April 30, 2024
Assets Built Under Old Seismic Standard, but
Seismic Renovation Completed (4 assets)
Ichigo Sakae Building, Ichigo Mita Building, Ichigo Gotanda Building,and Ichigo Higashi Ikebukuro Building
Assets Built Under Old Seismic Standard, but Original Construction
Met New Earthquake Resistance Standard (2 assets)2
Ichigo Ginza 612 Building and Ichigo Nagoya Building

1 PML (Probable Maximum Loss) is the maximum expected loss from an earthquake occurring in the next 50 years, expressed as a ratio to the estimated replacement costwhere the ratio of expected loss is greater than 10%.
2 Assets evaluated as having seismic strength equivalent to the new earthquake resistance standards and for which a third-party seismic evaluation report has been obtained.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

48

Portfolio Details (1)as of April 30, 2024
Asset
Type

OfficeNo.

Asset Name

Area

Location

Acquisition
Price(JPY M)

Book Value(JPY M)

LeasableArea(m2)

Occupancy

Apr 2024 Appraisal

Oct 2023 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

O-02 Ichigo Nishisando Building

Central Tokyo

Shibuya-ku, Tokyo

3,254

3,313

4,523.19

100%

3,290

3.8%

3,260

3.9%

+30

-0.1%

O-03 Ichigo Mita Building

Central Tokyo

Minato-ku, Tokyo

2,740

2,727

4,119.74

94.2%

3,720

3.9%

3,650

4.0%

+70

-0.1%

O-04 Ichigo Nanpeidai Building

Central Tokyo

Shibuya-ku, Tokyo

1,920

1,870

1,925.24

100%

2,680

3.2%

2,600

3.3%

+80

-0.1%

O-05 Ichigo Hanzomon Building

Central Tokyo

Chiyoda-ku, Tokyo

1,550

1,512

2,080.37

100%

2,240

3.4%

2,240

3.4%

–

–

O-06 Ichigo Hijirizaka Building

Central Tokyo

Minato-ku, Tokyo

1,200

1,199

1,947.90

94.1%

1,530

4.2%

1,530

4.2%

–

–

O-07 Ichigo Shibuya Kamiyamacho Building

Central Tokyo

Shibuya-ku, Tokyo

1,505

1,351

1,321.54

87.0%

1,940

3.5%

1,940

3.6%

–

-0.1%

O-09 Ichigo Shibakoen Building

Central Tokyo

Minato-ku, Tokyo

1,100

1,124

1,602.29

86.3%

1,270

4.0%

1,270

4.0%

–

–

O-10 Ichigo Ebisu Nishi Building

Central Tokyo

Shibuya-ku, Tokyo

1,917

1,896

1,484.39

100%

2,760

3.5%

2,670

3.6%

+90

-0.1%

O-11 Ichigo Ginza 612 Building

Central Tokyo

Chuo-ku, Tokyo

1,773

1,796

1,364.15

94.2%

2,390

3.5%

2,320

3.6%

+70

-0.1%

O-12 Ichigo Uchikanda Building

Central Tokyo

Chiyoda-ku, Tokyo

1,140

1,114

1,378.83

100%

1,490

4.0%

1,440

4.0%

+50

–

O-14 Ichigo Yotsuya 4 Chome Building

Central Tokyo

Shinjuku-ku, Tokyo

550

497

780.64

81.8%

591

3.9%

591

3.9%

–

–

O-15 Ichigo Tameike Building

Central Tokyo

Minato-ku, Tokyo

580

496

494.14

100%

738

3.5%

734

3.5%

+4

–

O-16 Ichigo Jimbocho Building

Central Tokyo

Chiyoda-ku, Tokyo

1,820

1,839

1,904.53

92.7%

2,500

3.8%

2,370

3.8%

+130

–

O-17 Ichigo Hakozaki Building

Central Tokyo

Chuo-ku, Tokyo

1,150

1,117

2,389.54

100%

1,460

4.1%

1,360

4.1%

+100

–

O-18 Ichigo Kudan 2 Chome Building

Central Tokyo

Chiyoda-ku, Tokyo

763

753

1,265.76

100%

1,200

4.0%

1,180

4.0%

+20

–

O-19 Ichigo Kudan 3 Chome Building

Central Tokyo

Chiyoda-ku, Tokyo

844

805

1,302.43

63.2%

906

4.1%

906

4.1%

－

–

O-20 Ichigo Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

5,060

4,771

5,346.39

85.1%

6,930

4.1%

6,820

4.2%

+110

-0.1%

O-21 Ichigo Shin Yokohama Building

Tokyo Metro Area

Yokohama

1,816

1,644

4,097.85

100%

1,770

4.5%

1,670

4.6%

+100

-0.1%

O-22 Ichigo Minami Ikebukuro Building

Tokyo Metro Area

Toshima-ku, Tokyo

1,460

1,326

1,491.50

100%

2,110

3.6%

2,010

3.7%

+100

-0.1%

O-23 Ichigo Nakano North Building

Tokyo Metro Area

Nakano-ku, Tokyo

764

697

1,264.11

100%

1,020

4.4%

990

4.5%

+30

-0.1%

O-24 Ichigo Eitai Building

Tokyo Metro Area

Koto-ku, Tokyo

1,490

1,388

2,605.54

100%

1,460

4.5%

1,470

4.5%

-10

–

O-26 Ichigo Ikejiri Building

Tokyo Metro Area

Meguro-ku, Tokyo

2,030

1,924

2,385.69

100%

2,380

4.1%

2,340

4.1%

+40

–

O-27 Ichigo Nishi Ikebukuro Building

Tokyo Metro Area

Toshima-ku, Tokyo

639

579

1,261.91

100%

1,070

4.2%

1,070

4.2%

–

–

O-28 Ichigo Nishi Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

765

756

1,334.68

88.9%

985

4.2%

939

4.2%

+46

–

O-29 Ichigo Kichijoji Building

Tokyo Metro Area

Musashino City, Tokyo

2,160

2,111

4,210.87

100%

2,910

4.4%

2,880

4.5%

+30

-0.1%
-0.2%

O-34 Ichigo Sakae Building

Four Major Cities

Nagoya

4,705

4,721

3,928.12

91.8%

5,100

4.3%

5,060

4.5%

+40

O-37 Ichigo Marunouchi Building

Four Major Cities

Nagoya

6,710

5,315

8,009.11

97.7%

7,940

3.9%

8,060

3.9%

-120

–

O-38 Ichigo Toyamaeki Nishi Building

Other Regional Cities Toyama City, Toyama

1,645

1,394

8,601.72

100%

1,850

5.7%

1,850

5.7%

–

–

O-39 Ichigo Mirai Shinkin Building

Other Regional Cities Oita City, Oita

1,158

1,073

3,551.46

100%

1,400

5.7%

1,400

5.7%

–

–

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

49

Portfolio Details (2)as of April 30, 2024
Asset
Type

OfficeNo.

Asset Name

Location

Area

Acquisition
Price(JPY M)

Book Value(JPY M)

Leasable
Area
(m 2)

Occupancy

Apr 2024 Appraisal

Oct 2023 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

Cap rate

ChangeValue(JPY M)

Cap rate

O-42 Ichigo Takamatsu Building

Other Regional Cities Takamatsu City, Kagawa

3,010

1,957

6,329.33

100%

4,000

5.9%

3,990

5.9%

+10

–

O-46 Ichigo Kanda Nishikicho Building

Central Tokyo

2,130

2,015

2,523.09

100%

3,320

3.5%

3,320

3.5%

–

–

Chiyoda-ku, Tokyo

O-47 Ichigo Akihabara North Building

Central Tokyo

Chiyoda-ku, Tokyo

5,500

5,416

6,250.53

100%

7,900

4.1%

7,900

4.1%

–

–

O-48 Ichigo Sakaisuji Honmachi Building

Four Major Cities

Osaka

1,940

1,670

3,729.35

100%

2,570

4.1%

2,490

4.2%

+80

-0.1%

O-49 Ichigo Kanda Ogawamachi Building

Central Tokyo

Chiyoda-ku, Tokyo

2,210

2,186

2,309.39

100%

2,470

3.8%

2,460

3.8%

+10

–

O-50 Ichigo Hatchobori Building

Central Tokyo

Chuo-ku, Tokyo

1,905

1,703

2,716.33

100%

2,770

4.2%

2,680

4.2%

+90

–

O-51 Ichigo Ebisu Green GlassCentral Tokyo

Shibuya-ku, Tokyo

5,900

5,718

3,159.27

100%

7,670

3.2%

7,690

3.2%

-20

–

O-52 Ichigo Omori Building

Central Tokyo

Shinagawa-ku, Tokyo

3,850

3,794

3,585.93

100%

4,770

3.9%

4,630

4.0%

+140

-0.1%

O-53 Ichigo Takadanobaba Building

Central Tokyo

Shinjuku-ku, Tokyo

1,580

1,596

1,606.92

90.7%

1,940

3.7%

1,940

3.7%

–

–

O-54 Ichigo Omiya Building

Tokyo Metro Area

Saitama City, Saitama

3,430

3,494

6,213.30

100%

4,620

4.7%

4,490

4.8%

+130

-0.1%

O-55 Ichigo Sagamihara Building

Tokyo Metro Area

Sagamihara City, Kanagawa

1,174

1,195

2,960.81

93.6%

1,350

5.0%

1,350

5.0%

–

–

O-57 Ichigo Sendai East Building

Other Regional Cities Sendai

1,840

1,519

5,205.49

95.4%

2,160

5.0%

2,100

5.1%

+60

-0.1%

O-58 Ichigo Kumamoto Building

Other Regional Cities Kumamoto City, Kumamoto

1,450

1,569

4,507.59

100%

1,640

5.5%

1,620

5.6%

+20

-0.1%

O-59 Ichigo Jingumae Building

Central Tokyo

Shibuya-ku, Tokyo

7,200

7,408

4,510.00

100%

8,050

3.0%

7,890

3.0%

+160

–

O-60 Ichigo Shibuya Dogenzaka Building

Central Tokyo

Shibuya-ku, Tokyo

3,650

3,691

2,789.86

92.7%

5,690

3.2%

5,690

3.2%

–

–

O-61 Ichigo Hiroo Building

Central Tokyo

Shibuya-ku, Tokyo

3,960

3,962

3,510.44

94.0%

4,860

3.5%

4,780

3.5%

+80

–

O-62 Ichigo Sasazuka Building

Central Tokyo

Shibuya-ku, Tokyo

4,780

5,056

6,425.29

67.8%

7,340

3.7%

6,320

3.7%

+1,020–O-63 Ichigo Nihonbashi East Building

Central Tokyo

Chuo-ku, Tokyo

4,700

4,260

4,216.97

100%

5,720

3.6%

5,700

3.6%

+20

–

O-64 Ichigo Sakurabashi Building

Central Tokyo

Chuo-ku, Tokyo

2,500

2,524

2,971.22

100%

3,330

3.5%

3,250

3.6%

+80

-0.1%

O-65 Ichigo Shinkawa Building

Central Tokyo

Chuo-ku, Tokyo

2,360

2,395

2,312.03

100%

3,220

3.5%

3,130

3.6%

+90

-0.1%

O-66 Ichigo Kudan Building

Central Tokyo

Chiyoda-ku, Tokyo

3,190

3,257

3,090.65

100%

3,720

3.6%

3,720

3.6%

–

–

O-67 Ichigo Higashi Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,660

3,653

4,548.10

100%

4,630

3.7%

4,480

3.7%

+150

–

O-68 Axior Mita

Central Tokyo

Minato-ku, Tokyo

1,800

1,681

2,369.82

100%

2,740

3.3%

2,680

3.4%

+60

-0.1%

O-69 Ichigo Higashi Ikebukuro Building

Tokyo Metro Area

Toshima-ku, Tokyo

4,570

4,644

4,437.97

91.6%

5,610

3.7%

5,570

3.7%

+40

–

O-70 Koriyama Big-i (Office Section)

Other Regional Cities Koriyama City, Fukushim

1,660

1,506

3,433.07

100%

2,200

5.0%

2,200

5.0%

–

–

O-71 Ichigo Kawasaki Building

Tokyo Metro Area

Kawasaki City, Kanagawa

1,750

1,830

3,871.06

92.0%

2,290

3.9%

2,300

3.9%

-10

–

O-72 Ichigo Shibuya East Building

Central Tokyo

Shibuya-ku, Tokyo

1,350

1,381

1,041.36

100%

1,760

3.2%

1,760

3.3%

–

-0.1%

O-73 Ichigo Ningyocho Building

Central Tokyo

Chuo-ku, Tokyo

1,450

1,488

1,769.75

100%

1,800

3.7%

1,680

3.8%

+120

-0.1%

O-74 Ichigo Nishi Honmachi Building

Four Major Cities

Osaka

2,190

2,243

6,152.00

100%

2,560

4.3%

2,560

4.4%

–

-0.1%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

50

Portfolio Details (3)as of April 30, 2024
Asset
Type

No.

Asset Name

O-75 Ichigo Hakata Building

OfficeLocation

Area

Four Major Cities

FukuokaAcquisition
Price(JPY M)

Book Value(JPY M)

1,380

1,378

LeasableArea(m2)

2,423.86

Occupancy

100%

Apr 2024 Appraisal

Oct 2023 Appraisal

Value(JPY M)

Value(JPY M)

1,610

Cap rate

4.3%

1,580

Cap rate

4.4%

ChangeValue(JPY M)

Cap rate

+30

-0.1%

O-76 Ichigo Nishiki First Building

Four Major Cities

Nagoya

2,000

1,954

3,324.70

100%

2,250

4.1%

2,250

4.1%

–

–

O-78 Ichigo Ikebukuro East Building

Tokyo Metro Area

Toshima-ku, Tokyo

3,010

2,999

3,118.69

100%

3,690

3.7%

3,630

3.8%

+60

-0.1%

O-79 Ichigo Motoazabu Building

Central Tokyo

Minato-ku, Tokyo

1,890

1,915

1,329.96

56.8%

2,230

3.3%

2,230

3.4%

–

-0.1%

O-80 Ichigo Otsuka Building

Tokyo Metro Area

Toshima-ku, Tokyo

2,740

2,764

3,616.77

100%

3,350

3.8%

3,270

3.9%

+80

-0.1%

O-81 Ichigo Nagoya Building

Four Major Cities

Nagoya

3,420

3,595

4,930.30

89.8%

3,940

4.1%

3,920

4.1%

+20

–

O-82 Ichigo Fushimi Building

Four Major Cities

Nagoya

2,340

2,325

4,155.60

89.0%

2,580

4.2%

2,580

4.2%

–

–

O-83 Ichigo Nishiki Building

Four Major Cities

Nagoya

1,330

1,289

2,006.78

100%

1,500

4.1%

1,500

4.1%

–

–

O-84 Ichigo Minami Morimachi Building

Four Major Cities

Osaka

1,040

1,086

2,521.51

100%

1,290

4.1%

1,260

4.2%

+30

-0.1%

O-85 Ichigo Shibuya Udagawacho Building

Central Tokyo

Shibuya-ku, Tokyo

3,500

3,529

1,491.68

89.0%

4,200

2.9%

4,200

2.9%

–

–

O-86 Win Gotanda Building

Central Tokyo

Shinagawa-ku, Tokyo

3,100

3,093

3,689.88

100%

4,090

3.7%

3,840

3.8%

+250

-0.1%

O-87 Ichigo Hongo Building

Tokyo Metro Area

Bunkyo-ku, Tokyo

2,300

2,318

2,744.02

94.1%

2,910

3.9%

2,720

4.0%

+190

-0.1%

O-88 Oimachi Center Building

Central Tokyo

Shinagawa-ku, Tokyo

1,680

1,756

2,771.41

100%

2,170

3.9%

2,140

4.0%

+30

-0.1%

O-89 Win Gotanda Building 2

Central Tokyo

Shinagawa-ku, Tokyo

3,300

3,279

3,434.69

100%

3,920

3.7%

3,740

3.8%

+180

-0.1%

O-90 MIF Building

Central Tokyo

Chiyoda-ku, Tokyo

2,200

2,188

1,690.27

100%

2,350

3.8%

2,350

3.8%

–

–

O-91 Ichigo Uchi Honmachi Building

Four Major Cities

Osaka

1,900

1,999

3,004.07

100%

1,870

4.3%

1,850

4.4%

+20

-0.1%

O-92 Ichigo Minami Otsuka Building

Tokyo Metro Area

Toshima-ku, Tokyo

2,780

2,886

3,129.49

100%

3,390

3.6%

3,390

3.6%

–

–

O-93 Ichigo Nogizaka Building

Central Tokyo

Minato-ku, Tokyo

3,315

3,487

2,199.35

100%

3,580

3.3%

3,620

3.3%

-40

–

O-94 Ichigo Hakata East Building

Four Major Cities

Fukuoka

2,250

2,331

2,901.99

100%

2,930

4.0%

2,910

4.0%

+20

–

O-95 Ichigo Nakameguro Building

Tokyo Metro Area

Meguro-ku, Tokyo

1,495

1,606

1,083.70

100%

1,590

3.6%

1,580

3.6%

+10

–

O-96 Ichigo Tachikawa Building

Tokyo Metro Area

Tachikawa City, Tokyo

3,830

3,814

4,879.78

95.9%

4,040

4.1%

4,040

4.1%

–

–

O-97 Ichigo Higashi Ikebukuro 3 Chome Building

Tokyo Metro Area

Toshima-ku, Tokyo

3,840

3,897

2,764.59

100%

3,810

3.7%

3,860

3.8%

-50

-0.1%

O-98 Ichigo Marunouchi South Building

Four Major Cities

Nagoya

1,750

1,796

1,973.27

100%

1,840

4.1%

1,850

4.1%

-10

–

O-99 Ichigo Hakataeki Higashi Building

Four Major Cities

Fukuoka

3,500

3,488

3,596.71

93.8%

3,780

4.1%

3,760

4.1%

+20

–

O-100 Fukuoka Kensetsu Kaikan

Four Major Cities

Fukuoka

2,750

2,764

2,949.22

100%

2,890

4.2%

2,910

4.2%

-20

–

O-101 Ichigo Kinshicho South Building

Tokyo Metro Area

Sumida-ku, Tokyo

1,875

1,942

2,054.47

100%

2,040

3.5%

2,060

3.5%

–

–

205,412201,440

260,307.31

96.5%

254,170

Subtotal - Office

250,030+4,140* April 2023 Appraisal Values for the asset acquired in the April 2024 fiscal period are the appraisal values at time of acquisition.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

51

Portfolio Details (4)as of April 30, 2024
Asset
Type

No.

Asset Name

Z-09 Future IZUMI

Other

Area

Location

Other Regional Cities Izumi City, Osaka

Leasable
Acquisition
Book Value
Area
Price
(JPY M)
2(JPY M)(m )Occupancy

Apr 2024 Appraisal

Oct 2023 Appraisal

Value(JPY M)

Value(JPY M)

Cap rate

ChangeCap rate

Value(JPY M)

Cap rate

1,210

1,017

3,733.66

100%

568

5.8%

566

5.8%

+2

–

Z-10 Ichigo Shibuya Bunkamura Dori Building Central Tokyo

Shibuya-ku, Tokyo

2,400

2,443

778.77

100%

2,910

3.0%

2,910

3.0%

–

–

Z-14 Ichigo Kamata Building

Ota-ku, Tokyo

1,400

1,447

2,124.68

100%

1,530

4.3%

1,530

4.3%

–

–

Subtotal - Other

5,010

4,908

6,637.11

100%

5,008

5,006

+2

Total (87 Assets)

210,422

206,349 266,944.42

96.6%

259,178

255,036+4,142

Tokyo Metro Area

Reference
TK Equity
Investment

GK Kizuna1 TK Equity Interest

JPY 38M© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

52

Appendix: Mid-Size Office Investment Opportunity© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

53

Japanese Mid-Size Office Investment Opportunity (1)Rich Pool of REITable Assets
 90%+ of Japanese real estate = mid-size High liquidity

Breakdown of Buildings in Japan by Floor Area (m²)
< 500

2,000 to 5,000

1,000 to 2,000

5,000 to 10,000>10,000

Mid-Size Real Estate：94%

Broad and Deep Tenant Base
 95% of all companies have 50 employees or less
 Diverse tenant industries contributes to stable high occupancy

500 to 1,000

44%

25%

15%

10
%

3%
3%

Source: Ministry of Land, Infrastructure, Transportation andTourism (2018)

Largely Untapped by Professional Management
 High ownership by individuals and “passive owner” corporations

results in inadequate building maintenance Lacking professional building and management specifications

Abundant Opportunities for Large-Scale Improvements Increase safety via seismic reinforcement
 Increase tenant satisfaction via value-add capex

Breakdown of Companies by Number of Employees<5

6 to 20

21 to 50

> 51

% Of Companies Suited to Mid-Size Assets：95%
66%

22%

7
5%
%

Source: Small and Medium Enterprise Agency (2023)

Significant Value-Add Potential© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

54

Japanese Mid-Size Office Investment Opportunity (2)Mid-Size Office Rents More Stable Than Larger-Size Office Rents
Office Rent Trends in 5 Central Tokyo Wards (Chiyoda, Chuo, Minato, Shinjuku & Shibuya)
JPY per Tsubo (3.3m2)

60,00050,000

Grade A

40,000

Grade A-

30,00020,000

Grade B

10,000Source: CBRE

02005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
Grade A refers to buildings in the 5 central wards of Tokyo (Chiyoda, Chuo, Minato, Shinjuku, and Shibuya) built no more than 11 years ago (therefore meeting current
seismic resistance standards), with leasable area greater than 21,450 square meters and total floor area greater than 33,000 square meters.
Grade A- and Grade B refers to buildings located in any of the 23 wards in Tokyo with leasable area greater than 14,850 square meters and total floor area greater than
23,100 square meters and leasable area greater than 660 square meters and total floor area between 6,600 and 23,100 square meters, respectively, and meeting current
seismic resistance standards.
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

55

Appendix: About Ichigo Office© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

56

Specialized Office REIT
Specialized Office REIT Focusing on Mid-Size Offices, an Asset Class That
Offers Both Return Stability and Upside Potential
 Mid-size office characteristics‒ Stable cashflows supporting earnings‒ Upside earnings potential in economic upturns‒ Value-add potential due to relatively inefficient market

 Portfolio focused on Tokyo Metropolitan Area
 Driving accretive growth via value-add capex and hands-on asset management© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

57

Portfolio: 98% Office, 76% Tokyo Metropolitan Area
as of April 30, 2024
No. Of Assets
Total Acquisition PriceAppraisal Value
Leasable Area
Occupancy

87 Assets
JPY 210.4B
JPY 259.2B
266,994.42m2
96.6%

By Asset Type
Other
2%

Map Key
Location
Acquisition Price (JPY B)% of Portfolio

Tokyo
Metro
Area
159.2
76%

Sendai1.8
1%Nagoya22.2
11%

Office98%

By Size<JPY 1B
2%

Kansai
8.2
4%
Fukuoka
9.8
5%

JPY 1B-2B
27%
Other
8.9
4%

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

>JPY 3B
51%
JPY 2B3B
19%

58

Highly Diversified Tenant Mix
as of April 30, 2024

Tenants by Industry

Total Number of Tenants: 1,006(Based on No. Of Tenants)
Education
2%
Restaurant/Hotel3%
Construction
3%

Share of Top 10 Tenants
9.9% of Leased Area
11.5% of Rental Income

Other
5%

Real
Estate4%
Finance5%Service30%

Top 10 Tenants (by Building & Leased Area)
Asset Name

Telecommunications
13%

Manufacturing
15%

Retail19%

Leased Area(m 2)

Industry

Share

1

Ichigo Akihabara North Building

Manufacturing

6,261

2.4%

2

Ichigo Jingumae Building

Telecommunication

3,161

1.2%

3

Ichigo Ikebukuro East Building

Service

2,964

1.1%

4

Ichigo Hiroo Building

Retail

2,417

0.9%

5

Future IZUMIServices

2,228

0.9%

Manufacturing

1,846

0.7%

7

Ichigo Toyamaeki Nishi Building,
Ichigo Takamatsu Building
Ichigo Kamata Building

Retail

1,820

0.7%

8

Ichigo Sendai East Building

Retail

1,724

0.7%

9

Oimachi Center Building

Construction

1,592

0.6%

10

Ichigo Ikejiri Building

Restaurant/Hotel

1,577

0.6%

25,597

9.9%

6

Total

* Service: Primarily advertising, consulting, HR, accounting, legal,
beauty-related, and public entities.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

59

Growth via Serving Tenants & Shareholders
2,200

5,000

Total Assets (JPY B)

Transition to
specialized office REIT
in September 2015

Dividend (JPY)
1,969

2,000

1,910

1,898

1,999

2,030

2,032

2,023

2,023

2,061

2,061

2,054

2,092

1,925

2,121

2,124

2,104

4,224

1,800

4,000

1,656

1,627

1,600

1,400

3,000

2,508
1,200

2,255
1,904

1,000

1,706

1,923

1,930

1,964

2,150

2,163

2,230

2,132

2,199

2,185

2,014

1,740

2,052

2,115

2,000

800

600

1,000

Oct 2015 Apr 2016 Oct 2016 Apr 2017 Oct 2017 Apr 2018 Oct 2018 Apr 2019 Oct 2019 Apr 2020 Oct 2020 Apr 2021 Oct 2021 Apr 2022 Oct 2022 Apr 2023 Oct 2023 Apr 2024

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

60

Acquisition-Driven Growth− Total asset acquisitions since October 2013: JPY 164.0B (expected)− JPY 88.7B (54.1%) via sponsor support

Cumulative Total
JPY 164.0B

Acquisitions and Sales Since October 2013 (Cumulative, JPY B)■ Acquisition From Sponsor ■ Acquisition From Third Party■ Sale to Sponsor■ Sale to Third Party

50.9

54.4

56.3

62.4

63.9

67.7

71.6

75.2

50.9

Acquisition
From Third
Party

75.2
(45.9%)

Acquisition
From
Sponsor

67.6

74.7

80.2

82.5

82.5

82.5

82.5

88.7

19.3

19.3

23.8

23.8

26.2

26.2

26.2

26.2

26.2

26.2

7.9

12.3

12.3

18.3

21.9

24.7

24.7

26.4

38.6

41.1

~ Oct 2019~ Oct 2020

~ Oct 2021

~ Oct 2022

~ Oct 2023

JPY 67.3B~ Oct 2024

Dec 2018
Acquisition &Sale
May 2019
Acquisition &Sale

Apr 2020
Acquisition
From
Third Party

Dec 2020
Acquisition
From
Third Party

Feb 2021
Sale toThird Party

Nov 2022
Acquisition From
Third Party

Apr 2024
Sale toThird Party

38.4

88.7
(54.1%)

Acquisitions
Sales

Oct 2013~ Oct 2015

~ Oct 2016

~ Oct 2017~ Oct 2018

Apr&May 2018
Nov 2016
Apr&May 2016
Dec 2014
Public Offering Public Offering Acquisition From Acquisition &Third Party
Sale
Acquisition & Sale Acquisition &Sale
May 2015
Sep
2018
Apr&May 2017
Public Offering
Acquisition
From
Acquisition &
Third
Party
Sept 2015
Sale
Transition to Pure
Office REIT

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Dec 2022
Jun 2022
Sale to Third Party
Acquisition
Jan 2023
From
Acquisition From
Third Party
SponsorOct 2023
Acquisition & Sale

61

Ichigo Branding: Safety, Quality, Design & Tenant Service
Improve the safety, quality, and design of assets via Ichigo’s
architectural and engineering capabilities to support high tenantsatisfaction© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

62

Ichigo Branding: Ichigo Layout Office & Ichigo Lounge
Provide Differentiated Ichigo Layout Office and Ichigo Lounge High-Quality
Office Spaces
Ichigo Layout Office (Example: Ichigo Nakameguro Building, Meguro-ku, Tokyo)
 Generating substantially higher rents reflecting higher value for tenants
 Supporting corporate growth by offering conversation places including meeting space on the open window side

Ichigo Lounge (Example: Ichigo Higashi Ikebukuro Building, Toshima-ku, Tokyo)
 Subdivided a vacant floor to create several private offices and a shared-use space for the exclusive use of tenants
 Generated significantly higher rents by offering attractive shared-use space

Ichigo Lounge Reception
Ichigo Lounge Space© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

63

Appendix: Other© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

64

J.League Shareholder Program
Represents Two Firsts for a Shareholder Program in Japan− First Japanese company to include not just its own shareholders, but also theshareholders of the REITs and solar power producer that it manages, in its
shareholder program (81,000 shareholders total)− First company to offer shareholders free tickets to every J.League game at every
J.League club

Ichigo is deepening its partnership with the J.League and working tofurther Ichigo’s mission of promoting local community developments.
Tickets to 2023 J.League Awards(December 5, 2023)

Invited shareholders to attend the2023 J.League Awards, whichcelebrates the achievements ofplayers, coaches, clubs, and referees
during the 2023 season

Ichigo J.League Shareholder Program Website Landing Page
© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

©J.LEAGUE

65

Ichigo Office’s Sponsor: Ichigo (2337)
Core Businesses: Asset Management, Sustainable Real Estate, Clean Energy‒ Manages Ichigo Office (8975), Ichigo Hotel (3463), and Ichigo Green (9282)‒ Sustainable Real Estate business adds value to existing buildings bydrawing upon its real estate technologies and expertise‒ Deeply committed to CSR and Sustainability
Hiromi Miyake

Ichigo(Weightlifting)(TSE Prime 2337)

Ichigo Office (8975)

Ichigo Preserves andImproves Real Estate

The word “Ichigo” comes from the ancientJapanese proverb, Ichigo Ichie, literally meaning“One lifetime, one encounter.” The phrase was
first used by a 16th century master of the tea
ceremony, Sen no Rikyu. He called upon his
disciples to give total focus and sincerity to eachact of the tea ceremony, because that particular
moment will only exist once and must be fully
lived and realized.
Ichigo embraces the Ichigo Ichie philosophy ofsincerity and service, and works to build strong
long-term relationships to support the success of
our clients, shareholders, and all stakeholders.

AssetManagement

Ichigo Investment Advisors

Ichigo Hotel (3463)
Ichigo Green (9282)

Sustainable
Real Estate

Ichigo Estate

CentroIchigo Owners

Ichigo Animation

Ichigo Marché

OneFive Hotels

Miyako City

Clean Energy
Other

Ichigo ECO Energy

Ichigo Si© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

Collinear66

Sponsor/Asset Manager/REIT Relationship

Sponsor

Ichigo (TSE Prime 2337)
100% Subsidiary

Sponsor Support
Value-Add Capabilities

Asset Manager

Ichigo Investment Advisors

Financial Support(Asset Warehousing)

Asset Management

TSE-Listed
Investment
Corporations

Ichigo Office(8975)

 Specializes in mid-size offices
 Focused on the Tokyo Metropolitan Area

Ichigo Hotel(3463)

 Specializes in lodging-focused hotels
 Listed in November 2015

Ichigo Green(9282) Solar power producer
 Listed in December 2016 15 solar plants, JPY 11.4B (as of May 31, 2024)

 93 assets, JPY 225.8B (as of May 31, 2024)

 30 hotels, JPY 69.8B (as of May 31, 2024)© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

67

Sustainable Growth via Sponsor Support
Pursuing Long-Term Sustainable Growth by Leveraging Ichigo’s MarketLeading Value-Add Capabilities
Buy

Sell

Ichigo Office

Ichigo(8975)(Prime 2337)

ThirdParty
Investors

Buy

Preserve and improve real estateleveraging
Ichigo’s value-add capabilities

Real
EstateValue-Add

Buy/SellAsset Warehousing
Sell

Ichigo Office Sourcing Strengths
・ Sourcing Diversity: Ichigo Office proprietary sourcing routes + Ichigo sponsor network
・ Strong Sponsor Support: Ichigo assets fully available to Ichigo Office for acquisition
・ Stable Sourcing: Backed by Ichigo value-add capabilities, so less sensitive to market environment© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

68

Share Price (November 1, 2011 to April 30, 2024)
Source: Bloomberg
Trading Volume

Ichigo Office

TSE REIT Index(JPY)(Shares Traded)

150,000

60,000Post-Merger High (closing): JPY 119,300 (Feb 21, 2020)
Post-Merger Low (closing): JPY 25,310 (Nov 22, 2011)
April 2024 Period Average Daily Volume: 3,412 shares (as of April 30, 2024)
125,000

50,000100,000

40,00075,00030,00050,00020,00025,00010,0000
2011年
2015年 2016/1
2016年
2012/1 2012年
2013/1 2013年
2014/12014年 2015/1

0
2017年
2017/1

2018年
2018/1

2019年
2019/1© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

2020年
2020/1

2021年
2021/1

2021年
2022/1 2022年
2024/12023/12023年

69Shareholder Composition
as of April 30, 2024

Major Shareholders
Name
1

Ichigo Trust Pte. Ltd.

Shareholdings by Shareholder TypeNo. OfSharesShare

384,704

25.4%

Foreign Corporations & Individuals

Non-Financial Domestic Corporations

Domestic Financial Institutions

Domestic Individuals

556,181(36.8%)

639,351(42.2%)

2

Custody Bank of Japan, Ltd., Trust Bank

262,92517.4%

734,210(48.5%)

3

The Master Trust Bank of Japan

205,290

13.6%

28,237(1.9%)

125,748(8.3%)

168,195(11.1%)

4

Ichigo Inc.

149,208

9.9%

5

Nomura Trust & Banking Co., Ltd.
Investment Trust Account53,558

3.5%

583,855(38.6%)

594,350(39.3%)

624,437(41.3%)

6

STATE STREET BANK WEST CLIENT TREATY 505234

20,8951.4%

167,065(11.0%)

153,918(10.2%)

164,554(10.9%)

7

JP MORGAN CHASE BANK 385771

14,646

1.0%

October 2023*（1,513,367 shares）

April 2024*（1,513,367 shares）*

April 2023
（1,513,367 shares）* No. Of Shares Outstanding

8

BNP Paribas Securities (Japan) Limited

13,091

0.9%

9Japan Securities Finance Co., Ltd.

12,7620.8%

Shareholders by Shareholder TypeApr 30, 2023

Mitsubishi UFJ Morgan Stanley Securities
10Co., Ltd.

12,523

0.8%

Total

1,129,602

74.6%

Oct 31, 2023

Apr 30, 2024

Shareholders Shareholders Shareholders

Domestic Individuals
Domestic Financial Institutions
City banks, trust banks
Regional banks
Other (including securities companies)
Non-Financial Domestic Corporations
Foreign Corporations & Individuals
Total© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

19,493
55
5
8
42
210
274
20,032

19,438
54
5
7
42
222
283
19,997

21,255
51
4
5
42
229
293
21,828

Share

97.4%
0.2%
–
–
0.2%
1.0%
1.3%
100%

70

Ichigo Office Overview
Investment Corporation

as of April 30, 2024

Name

Ichigo Office REIT Investment Corporation

Securities Code8975

Address

2-6-1 Marunouchi, Chiyoda-ku, Tokyo

Executive Director

Keisuke Chiba, Takafumi Kagiyama

Portfolio Assets

87 Assets

Portfolio Value

JPY 210.4B (based on acquisition price)

Fiscal Periods (Semi-Annual)November – April; May – OctoberAsset Management Company
Name

Ichigo Investment Advisors Co., Ltd.

President & Executive Officer

Hiroshi Iwai

Registration & Membership

Financial Instruments Dealer License (Investment Management Services,
Investment Advisory & Agency Services, and Type II Financial Instruments
Services): Minister of Finance, Kanto Financial Bureau #318

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

71

Disclaimer
These materials are for informational purposes only, and do not constitute or form a part of, and should not be construed as,
an offer to sell or a solicitation of an offer to buy any securities of Ichigo Office REIT Investment Corporation (“Ichigo Office”).
These materials may contain forward-looking statements regarding the intent, belief or current expectations of management of
Ichigo Office with respect to financial condition and future results of operations. These statements are based on certain
assumptions founded on currently available information. Accordingly, such statements are subject to risks, uncertainties andassumptions and there is no assurance as to actual financial conditions or results of operations. Actual results may vary fromthose indicated in the forward-looking statements. Accordingly, please refrain from solely relying on these statements.
These materials have been created by the management of Ichigo Office and Ichigo Investment Advisors Co., Ltd. (IIA) with thebelief that the information contained is accurate. However, there is no assurance given as to the accuracy, certainty, validity or
fairness of any such information. Please note that the content of these materials is subject to revision or retraction without priornotice.
This document is a translation. If there is any discrepancy between the Japanese version and the English translation, theJapanese version shall prevail. No copying or reproduction of these materials or part of these materials is allowed withoutobtaining prior consent from Ichigo Office and IIA.

Make The World
More Sustainable

Ichigo Office IR Desk (8975)
TEL：+81-3-4485-5231
E-mail: IR_Office@ichigo.gr.jp
www.ichigo-office.co.jp/en
Ichigo is Japan’s first zero-carbon listed real estate company.
We are taking responsibility for our environmental footprint by offsetting ourcarbon emissions and investing in low-carbon technologies such as solar energy.

© Ichigo Investment Advisors Co., Ltd. Ichigo Office REIT Investment Corporation All rights reserved.

72